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Children and Career Interruptions: The Family Gap in Denmark

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  • Datta Gupta, Nabanita

    ()
    (Aarhus University)

  • Smith, Nina

    ()
    (Aarhus University)

Abstract

The effect of children and career interruptions on the family gap is analysed based on Danish longitudinal data covering the years 1980-1995. The estimated model controls for unobserved time-constant heterogeneity. The results show that when controlling for unobserved heterogeneity, the negative effect of children on mothers’ wages disappears. The main effect of children seems to be loss of human capital accumulation during childbirth periods. Beside this, there is no indication that children have long-term effects on the earnings potential of their mothers, holding experience constant.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 263.

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Length: 32 pages
Date of creation: Feb 2001
Date of revision:
Publication status: published in: Economica, 2002, 69 (276), 609-629
Handle: RePEc:iza:izadps:dp263

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Keywords: unobserved heterogeneity; Children; career interruptions; family gap;

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References

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  1. Daniel, K., 1991. "Does Marriage Make Men More Productive?," University of Chicago - Economics Research Center, Chicago - Economics Research Center 92-2, Chicago - Economics Research Center.
  2. Gupta, N.D. & Oaxaca, R.L. & Smith, N., 1998. "Wage Dispersion, Public Sector Wages and the Stagnating Danish Gender Wage Gap," Papers, Centre for Labour Market and Social Research, Danmark- 98-18, Centre for Labour Market and Social Research, Danmark-.
  3. Nijman, T.E. & Verbeek, M.J.C.M., 1992. "Testing for selectivity in panel data models," Open Access publications from Tilburg University, Tilburg University urn:nbn:nl:ui:12-153280, Tilburg University.
  4. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, Econometric Society, vol. 47(1), pages 153-61, January.
  5. Albrecht, J & Edin, P-A & Sundstrom, M & Vroman, S-B, 1996. "Career Interruptions and Subsequent Earning : A Reexamination Using Swedish Data," Papers, Uppsala - Working Paper Series 1996-23, Uppsala - Working Paper Series.
  6. David Neumark & Sanders D. Korenman, 1988. "Does marriage really make men more productive?," Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.) 29, Board of Governors of the Federal Reserve System (U.S.).
  7. Joshi, Heather & Paci, Pierella & Waldfogel, Jane, 1999. "The Wages of Motherhood: Better or Worse?," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 23(5), pages 543-64, September.
  8. Sanders Korenman & David Neumark, 1990. "Marriage, Motherhood, and Wages," NBER Working Papers 3473, National Bureau of Economic Research, Inc.
  9. Jacob Mincer & Solomon Polacheck, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, National Bureau of Economic Research, Inc, in: Economics of the Family: Marriage, Children, and Human Capital, pages 397-431 National Bureau of Economic Research, Inc.
  10. Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
  11. Christopher J. Ruhm, 1996. "The Economic Consequences of Parental Leave Mandates: Lessons from Europe," NBER Working Papers 5688, National Bureau of Economic Research, Inc.
  12. Verbeek, M.J.C.M. & Nijman, T.E., 1990. "Testing for selectivity bias in panel data models," Discussion Paper, Tilburg University, Center for Economic Research 1990-18, Tilburg University, Center for Economic Research.
  13. Datta Gupta, Nabanita & Smith, Nina, 2001. "Children and Career Interruptions: The Family Gap in Denmark," IZA Discussion Papers 263, Institute for the Study of Labor (IZA).
  14. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 82(2), pages S76-S108, Part II, .
  15. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 30(3), pages 1434-75, September.
  16. Waldfogel, Jane, 1998. "The Family Gap for Young Women in the United States and Britain: Can Maternity Leave Make a Difference?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 16(3), pages 505-45, July.
  17. Naur, M. & Smith, N., 1996. "Cohort Effects on the Gender Wage Gape in Danmark," Papers, Centre for Labour Market and Social Research, Danmark- 96-05, Centre for Labour Market and Social Research, Danmark-.
  18. Rosen, A., 1989. "Bargaining Over Effort," Papers, London School of Economics - Centre for Labour Economics 351, London School of Economics - Centre for Labour Economics.
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